Health insurance, based on trust and motorbikes

In Indonesia, health coverage is based on trust and delivered by motorbike

When faced with the nightmare snarl that is Jakarta traffic, where a two kilometer trip can become a 40-minute endurance test, many people reluctantly hail an ojek. These motorcycle taxis daringly wend through the gridlocked traffic, which by some measure is amongst the worst worldwide, to quickly deliver time-pressed passengers to their destination.

The problem is that traditional ojek drivers can be a scruffy bunch mounted on clapped-out rides that often lack both insurance and helmets to cover passengers for the perils involved. That the drivers fiercely haggle over the charge only adds to the reluctance many have about using them.

Enter GO-JEK, a startup that revolutionized the industry when it burst onto the market in force. A few taps on a smartphone summons a young green-uniformed rider to your location. Journey charges are pre-calculated, payment is made electronically and a helmet, disposable respiratory mask as well as a hair cap are provided to passengers who can also rate the drivers on the ride-hailing app. Both driver and passenger are also provided with compensation in case an accident happens during the ride.

Depending on the distance, costs can be higher than an ojek, but the efficiency, simplicity and safety has won the public over and made GO-JEK the fastest-growing and most visible startup in Indonesia. The company, which partners with more than 200,000 drivers in 14 cities including the tourist destination of Bali, now offers services including couriers, restaurant food delivery, online tickets and grocery shopping. You can even order masseuses, hairdressers and cleaners to your door.

Trust is the product

Nadiem Makarim, CEO and founder, explains that, “People in Jakarta spend up to four hours a day in traffic. GO-JEK doesn’t solve congestion, but it provides a compelling alternative. People can use the efficiency of GO-JEK to get to destinations, or better spend their time by having services delivered directly to them.”

Makarim, a graduate of Harvard Business School, says that the main selling point is trust. The digital service connects the most reliable drivers directly to customers and branding clearly identifies them. Drivers all have a similar uniform of green jackets and helmets, while a robust android headset connects them to the GO-JEK platform.

“We are actually seeing both demand and supply growing at the same time,” Makarim notes. “A lot of GO-JEK transportation users – we think the majority – are women who would never previously have thought of using an ojek because of the trust issue.” We think the majority of users are women who would never previously have thought of using an ojek because of the trust issue Nadiem Makarim

While some ojek drivers are disgruntled at the rise of the upstart startup and there have been clashes, the professionalization of the industry has appealed to many others who have enlisted at mass recruiting sessions. The attraction is efficient use of time. Sulasih, a single parent with two children, decided to resign from her previous job and apply as a GO-JEK driver. “I now spend more time with my children because I am free to choose the times I work. Compared to my previous job, my work schedule as GO-JEK driver is more flexible.”

Instead of spending 75% of their 12-14 hour working day waiting on street corners, the referral services allows them to identify where customers are and go to them. Drivers also have greater flexibility concerning when they work and the additional high-value-add delivery services further helps increase business. “I work graveyard shifts at a hotel in Jakarta and during the day, I work as a GO-JEK driver,” says Nizar Amin, who started as a GO-JEK driver in mid. “My income from driving is higher than that of my job at the hotel.”

With benefits

Another advantage is the benefits. The drivers are independent partners and with the June launch of an innovative health insurance solution provided by Allianz Life Indonesia, drivers and their families can now opt to take advantage of a flat-rate health protection.

“The health insurance product is designed and tailored to the needs of GO-JEK drivers,” says Joachim Wessling, country manager and president director of Allianz Life Indonesia. The inpatient benefit will provide coverage for the cost of hospital rooms, consultation visits by general practitioners and specialists, surgeries and other inpatient treatments. For outpatient measures, it covers the cost of the doctor’s consultation cost, medicine prescriptions, diagnostic tests, physiotherapy and basic immunization.”

Todd Swihart, managing director of Allianz Health & Corporate Solutions in Indonesia, explains that“Allianz has covered GO-JEK employees since,” explains “The company is socially minded, so once they were established, they asked can we provide a cost-effective health insurance for the drivers and their families as well.”

Swihart explains that, unlike in western nations where generous pension benefits often distinguish preferred employers, it is health benefits that attract employees in countries like Indonesia. Compared with neighboring Malaysia and Thailand, Indonesia spends relatively little on health services. It has, for example, one of the lowest hospital beds to population ratios in the region (0.9 to 1000 people), though the country made a step forward when last year it launched Badan Penyelenggara Jaminan Sosial (BPJS), a national health insurance scheme.

Under BPJS, by, all citizens will have access to a wide range of public health services. BPJS care aims to comprehensively cover treatment for everyday concerns such as flu and dental treatment, as well as open-heart surgery, dialysis and chemotherapy. While BPJS offers comprehensive benefits, many people still prefer private health insurance due to convenience and added value services. Allianz has established a network of doctors and hospitals to keep premiums down and ensure clients are seen quickly. The daily premiums are paid automatically from the driver’s GO-JEK accounts, so the process is cashless and hassle free, while the backend registrations and identification card production is triggered automatically by the app.

GO-JEK drivers have a digital experience which matches their mobile lifestyle. “We are delighted to fulfill the needs of GO-JEK drivers as our customers. Digital by nature, this service is in line with Allianz’s service transformation spirit,” says Wessling.

“From our perspective, it is an opportunity to reach the mass market,” Swihart says. “It is more than 200,000 drivers and their families, it’s all other’s in the GO-JEK network : it’s the hairdressers, the masseuses and street vendors.” While the future in a country like Indonesia is undoubtedly digital, the question how to reach a mass audience without a massive marketing spend is crucial for companies.

The answer, Swihart notes, is to partner with companies such as GO-JEK who gain trust from the population. “If we offer a product that the drivers are confident in buying, then we become part of GO-JEK’s trust and digital ecosystem. Word will spread and we could eventually reach out to Indonesia’s huge and growing middle-class.”

Health insurance, based on trust and motorbikes

In Indonesia, health coverage is based on trust and delivered by motorbike

Health insurance, based on trust and motorbikes

In Indonesia, health coverage is based on trust and delivered by motorbike

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